Stock markets are still under the influence of the attacks on Saudi Arabian oil facilities. This incident happened on Saturday. Nevertheless, it remains as one of the most important topics even several days after the incident. It is not surprising because Saudi Arabia is the second biggest oil producer in the world.
Another issue which is directly connected to the stock market is state-owned company Saudi Aramco. This company has a plan to go public. However, Saudi Aramco changed its plans several times regarding the initial public offering (IPO). It is unclear how will this attack the influence of Saudi Aramco. It is important to mention that even before the attack, exact date of IPO was unknown. Such attacks can have a negative impact on the company in the long run. Saudi Aramco reduced daily production by 5.7 million barrels per day.
This incident is not the only important news that captivates the attention of investors and stock market analysts. Another news which will influence the stock markets is the U.S. Federal Reserve meeting which starts on Tuesday. The meeting of the rate-setting committee is an important event. According to the market expectations policymakers might reduce the interest rates by a quarter of a percentage point. On Wednesday, the outcome of this meeting will provide information about the plans of the Federal Reserve.
Stock markets on Tuesday
The index of the Dow Jones Industrial Average fell by 80 points or 0.3% to 27,002. Another U.S. index S&P 500 reduced by 3 points or 0.1% to 2,295. The Nasdaq Composite Index fell by 1point or less than 0.1% to 8,152.
The Pan-European index STOXX 600 fell by 0.12% to 389.06. The German DAX index decreased by 0.13% to 12363.78. The French CAC 40, on the contrary, strengthened its position. Its index rose 0.14% to 7331.62.
The trade tensions in the Middle East and the meeting of the rate-setting committee are two major reasons which will affect the stock markets.
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